Earnings release
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Toronto, Ontario--(Newsfile Corp. - July 30, 2025) - CareRx Corporation (TSX: CRRX) ("CareRx" or the "Company"), Canada's leading provider of pharmacy services to seniors living and other congregate care communities, today reported its financial results for the second quarter ended June 30, 2025. "The addition of new beds in the second quarter marks the beginning of what we expect will be a period of attractive growth," said Puneet Khanna, President and Chief Executive O icer of CareRx. "Coupled with continued operational discipline and targeted investments, we remain focused on supporting our home operator partners by delivering a superior quality of care while scaling e iciently." Highlights for the Second Quarter of 2025 Revenue for the quarter was $91.4 million compared to $89.6 million for the first quarter of 2025 and $92.0 million for the second quarter of 2024: Increase compared to the first quarter of 2025 was primarily driven by an increase in the average number of beds serviced and one additional weekday; and Decrease compared to the second quarter of 2024 was primarily due to a change in the mix of branded and generic pharmaceuticals dispensed. Adjusted EBITDA for the quarter was $8.0 million compared to $7.8 million for the first quarter of 2025 and $7.5 million for the second quarter of 2024: Increase compared to the prior quarter was due to the increase in the average number of beds serviced partially o set by non-recurring adjustments in other operating expenses that occurred in the prior quarter; and Increase compared to the same period in the prior year was primarily due to certain e iciencies and cost savings initiatives. Net income for the quarter was $0.6 million compared to net income of $0.2 million for the first quarter of 2025 and net loss of $1.4 million for the second quarter of 2024: Increase in net income compared to the prior quarter was primarily due to an increase in the average number of beds serviced and a slight decrease in transaction costs; and Elimination of net loss compared to the same period in the prior year was driven primarily by a non-cash adjustment related to an intangible asset impairment recorded during the second quarter of 2024 as a result of the Company's sale of one of its non-core pharmacy locations; and decreases in finance costs, depreciation and amortization expenses; partially o set by increase in transaction, restructuring and other costs. In April 2025, the Ontario Ministry of Health issued an Executive O icer Notice announcing a pause in the previously scheduled changes to long-term care pharmacy funding. These changes, which were scheduled to go into e ect on April 1, 2025, would have reduced the fixed professional fee under the fee-per-bed capitation model from an annual amount of $1,500 to $1,400 per bed, with further annual decreases of $100 until reaching $1,200 per bed. FINANCIAL RESULTS Selected Financial Information 1 1
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For the three month periods ended June 30, For the six month periods ended June 30, 2025 2024 2023 2025 2024 2023 $ $ $ $ $ $ Revenue 91,390 91,968 94,485 180,940 181,697 185,889 EBITDA 6,827 5,784 6,415 13,557 12,542 12,189 Adjusted EBITDA 7,997 7,517 7,040 15,776 14,962 13,859 Adjusted EBITDA per share - Basic $0.13 $0.13 $0.12 $0.25 $0.25 $0.25 Adjusted EBITDA Margin 8.8% 8.2% 7.5% 8.7% 8.2% 7.5% Net income (loss) 561 (1,379) 1,881 788 (1,896) (268) Per share - Basic and Diluted $0.01 ($0.02) $0.03 $0.01 ($0.03) $0.00 Cash provided by operations 3,769 8,072 5,329 11,143 17,350 10,395 Total Assets 218,310 218,584 268,782 218,310 218,584 268,782 Total Liabilities 131,364 138,316 188,886 131,364 138,316 188,886 Conference Call The Company will host a conference call, including a slide presentation, to discuss its second quarter of 2025 financial results on Thursday, July 31, 2025 at 8:30 a.m. Eastern Time (ET). Telephone Dial-In Access Information To dial direct and enter the call through an operator, dial 647-849-3320 or 1-833-752-4643. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. Those participating in the conference call by telephone can view the slide presentation by accessing the online webcast (see instructions below) and choosing the Non-Streaming Audio option. Webcast Access Information A live webcast of the conference call, including the slide presentation, will be available on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/) and can be accessed . Please connect at least 15 minutes prior to the conference call to ensure adequate time for any so ware download that may be required to join the webcast. To view the webcast presentation with slides, please choose either the Real Streaming Audio or Windows Streaming Audio option. The webcast with slide presentation will be archived for 90 days on the Events and Presentations page of the Investors section of the Company's website (https://carerx.ca/presentations/). About CareRx Corporation CareRx is Canada's leading provider of pharmacy services to seniors living and other congregate care communities (long-term care homes, retirement homes, assisted living facilities and group homes). We are a national organization with a large network of pharmacy fulfillment centers strategically located across the country. This allows us to deliver medications in a timely and cost-e ective manner and quickly respond to routine changes in medication management. We use best-in-class technology that automates the preparation and verification of multi-dose compliance packaging of medication, providing the highest levels of safety and adherence for individuals with complex medication regimens. We take an active role in working with our home operator partners to promote resident health, sta education and medication system quality and e iciency. For additional information, please contact: 1 1 1 1
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Puneet Khanna President & Chief Executive O icer CareRx Corporation 416-927-8400 Suzanne Brand Chief Financial O icer CareRx Corporation 416-927-8400 Neil Weber Investor Relations LodeRock Advisors 647-222-0574 Forward-Looking Statements This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. These forward-looking statements include, but are not limited to, statements regarding the Company's business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events, including statements about the Company's future growth and investments, and the Company's intent to scale its business. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements are necessarily based on management's perception of historical trends, current conditions, and future developments, as well as assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to known and unknown risks and uncertainties (many of which are beyond the control of the Company) that could cause actual results to di er materially from those contemplated by such statements. Factors and risks that could cause such di erences include, but are not limited to, the Company's general business risks, the Company's exposure to and reliance on government regulation and funding, risks related to employee recruitment and retention, the Company's liquidity and capital requirements, exposure to epidemic or pandemic outbreak, reliance on contracts with key care operators, and other risk factors described from time to time in the reports and disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. The foregoing risks and factors is not an exhaustive list of the factors that may impact the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements. The factors underlying current expectations are dynamic and subject to change. Other than as specifically required by applicable laws, the Company is under no obligation and it expressly disclaims any such obligation to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements. Non-IFRS Measures This press release includes certain measures which have not been prepared in accordance with IFRS. "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin" and "Adjusted EBITDA per share". These non-IFRS measures are not standardized financial measures recognized under IFRS and, accordingly, readers are cautioned that these measures should not be construed as alternatives to net income, the most directly comparable financial measure determined in accordance with IFRS. The non-IFRS measures presented by the Company may not be comparable to similar measures disclosed by other issuers. The non-IFRS measures disclosed in this press release should not be viewed as a substitute for the related financial information presented in accordance with IFRS. The Company defines "EBITDA" as earnings before depreciation and amortization, finance costs, net, and income tax expense (recovery). "Adjusted EBITDA" is defined as EBITDA before transaction, restructuring and other costs, change in fair value of contingent consideration liability, impairments, (gain) loss on disposal of assets and share-based compensation expense. "Adjusted EBITDA Margin" is defined as Adjusted EBITDA divided by revenue. "Adjusted EBITDA per share" is defined as Adjusted EBITDA divided by the weighted average outstanding shares. Management of the Company believes that these non-IFRS measures provide useful information to investors regarding the Company's
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financial condition and results of operations, as they provide additional key metrics of performance. The Company believes that Adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations which the Company can use to fund working capital requirements, service interest and principal debt repayments and fund future growth initiatives. The Company's agreements with lenders are also structured with certain financial performance covenants which includes Adjusted EBITDA as a key component of the covenant calculation. EBITDA and Adjusted EBITDA are not recognized measures under IFRS. The Company uses Adjusted EBITDA Margin to assess the e iciency of its operations by comparing Adjusted EBITDA for the period against revenues. The Company believes that Adjusted EBITDA per share can provide shareholders with useful information, contextualizing Adjusted EBITDA by factoring in changes to the Company's outstanding shares. Reconciliation of Non-IFRS Measures For the three month periods ended June 30, For the six month periods ended June 30, 2025 2024 2025 2024 $ $ $ $ Net income (loss) 561 (1,379) 788 (1,896) Depreciation and amortization 4,543 4,821 9,301 9,638 Finance costs, net 1,723 2,342 3,468 4,800 EBITDA 6,827 5,784 13,557 12,542 Transaction, restructuring and other costs 423 63 940 455 Change in fair value of contingent consideration liability 15 17 45 (171) Goodwill and intangible assets impairment - 764 - 764 Share-based compensation expense 526 373 948 862 Loss on disposal of assets 206 516 286 510 Adjusted EBITDA 7,997 7,517 15,776 14,962 Adjusted EBITDA Margin 8.8% 8.2% 8.7% 8.2% Weighted average number of shares - basic (in thousands) 63,000 60,131 62,546 59,998 Adjusted EBITDA per share - basic $0.13 $0.13 $0.25 $0.25 Weighted average number of shares - diluted (in thousands) 64,974 60,131 64,520 59,998 Adjusted EBITDA per share - diluted $0.12 $0.13 $0.24 $0.25 To view the source version of this press release, please visit https://www.newsfilecorp.com/release/260749